📊 DRVN Key Takeaways
Is Driven Brands Holdings Inc. (DRVN) a Good Investment?
Driven Brands faces significant fundamental headwinds: flat revenue growth combined with declining net income (-6.5% YoY) signals operational deterioration and margin compression. The company carries heavy leverage (2.45x debt-to-equity) with weak liquidity (0.75x current ratio) and minimal cash relative to debt obligations, limiting financial flexibility.
Driven Brands shows a fundamentally mixed profile: it remains profitable, generates positive operating cash flow, and converted that into positive free cash flow despite meaningful capital spending. However, flat revenue, a slight decline in net income, below-1.0x liquidity, and elevated leverage limit balance-sheet flexibility and reduce the quality of the earnings improvement.
Driven Brands Holdings Inc. Key Strengths (DRVN)
- Strong operating cash flow generation ($330.5M annually)
- Solid operating margin of 12.4% demonstrates core business profitability
- Reasonable interest coverage ratio of 5.3x indicates ability to service debt
- Positive profitability with 10.1% operating margin and 5.6% net margin
- Solid cash generation with $234.75M operating cash flow and positive free cash flow
- EPS growth materially outpaced net income decline, indicating improved per-share earnings performance
DRVN Stock Risks: Driven Brands Holdings Inc. Investment Risks
- Revenue completely flat at 0% YoY growth; stagnant top-line with no expansion trajectory
- Net income declining 6.5% YoY despite stable revenue; indicates negative operating leverage and margin compression
- High financial leverage (2.45x D/E) combined with weak liquidity (0.75x current ratio and 0.67x quick ratio) creates vulnerability; minimal cash buffer ($102.9M) relative to $1.9B debt
- Revenue was flat year over year, signaling limited top-line momentum
- Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt
- Liquidity is tight with a 0.90x current ratio, 0.80x quick ratio, and only moderate 3.7x interest coverage
Key Metrics to Watch
- Revenue growth trajectory and return to positive YoY growth rates
- Net margin stabilization and operating income trends
- Debt reduction progress and improvement in current ratio toward 1.0x minimum
- Organic revenue growth and margin expansion
- Debt reduction, interest coverage, and free cash flow conversion
Driven Brands Holdings Inc. (DRVN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DRVN Profit Margin, ROE & Profitability Analysis
DRVN vs Automotive Sector: How Driven Brands Holdings Inc. Compares
How Driven Brands Holdings Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Driven Brands Holdings Inc. Stock Overvalued? DRVN Valuation Analysis 2026
Based on fundamental analysis, Driven Brands Holdings Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Driven Brands Holdings Inc. Balance Sheet: DRVN Debt, Cash & Liquidity
DRVN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Driven Brands Holdings Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.94 indicates the company is currently unprofitable.
DRVN Revenue Growth, EPS Growth & YoY Performance
DRVN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $502.3M | N/A | $-0.09 |
| Q2 2025 | $518.8M | N/A | $0.18 |
| Q1 2025 | $482.0M | N/A | $0.02 |
| Q3 2024 | $581.0M | -$14.9M | $-0.09 |
| Q2 2024 | $606.9M | $30.2M | $0.18 |
| Q1 2024 | $562.5M | $4.3M | $0.03 |
| Q3 2023 | $516.6M | $15.8M | $0.09 |
| Q2 2023 | $508.6M | -$22.6M | $-0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Driven Brands Holdings Inc. Dividends, Buybacks & Capital Allocation
DRVN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Driven Brands Holdings Inc. (CIK: 0001804745)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRVN
What is the AI rating for DRVN?
Driven Brands Holdings Inc. (DRVN) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRVN's key strengths?
Claude: Strong operating cash flow generation ($330.5M annually). Solid operating margin of 12.4% demonstrates core business profitability. ChatGPT: Positive profitability with 10.1% operating margin and 5.6% net margin. Solid cash generation with $234.75M operating cash flow and positive free cash flow.
What are the risks of investing in DRVN?
Claude: Revenue completely flat at 0% YoY growth; stagnant top-line with no expansion trajectory. Net income declining 6.5% YoY despite stable revenue; indicates negative operating leverage and margin compression. ChatGPT: Revenue was flat year over year, signaling limited top-line momentum. Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt.
What is DRVN's revenue and growth?
Driven Brands Holdings Inc. reported revenue of $1.9B.
Does DRVN pay dividends?
Driven Brands Holdings Inc. does not currently pay dividends.
Where can I find DRVN SEC filings?
Official SEC filings for Driven Brands Holdings Inc. (CIK: 0001804745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRVN's EPS?
Driven Brands Holdings Inc. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DRVN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Driven Brands Holdings Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DRVN stock overvalued or undervalued?
Valuation metrics for DRVN: ROE of 17.1% (sector avg: 12%), net margin of 7.0% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
What is DRVN's AI grade for 2026?
Our dual AI analysis gives Driven Brands Holdings Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DRVN's free cash flow?
Driven Brands Holdings Inc.'s operating cash flow is $330.5M, with capital expenditures of $222.8M. FCF margin is 5.8%.
How does DRVN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 7.0% (avg: 6%), ROE 17.1% (avg: 12%), current ratio 0.75 (avg: 1.2).
Is Driven Brands Holdings Inc. carrying too much debt?
DRVN has a debt-to-equity ratio of 2.45x, which is above the Automotive sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.